Valqua (7995) Q3 2025 earnings summary

Executive summary

• Net sales for 1-3Q FY3/2025 declined to ¥44,994 million, reflecting weaker demand in key markets.

• Profit attributable to owners dropped to ¥2,804 million, with comprehensive income falling to ¥2,442 million.

• Operating profit declined to ¥3,987 million, and gross profit margin decreased to 39.9%.

Financial highlights

• Earnings per share fell to ¥159.42 from ¥227.01 year-over-year.

• Operating cash flow for 1-3Q FY3/2025 was ¥2,475 million, up from ¥959 million in the prior year.

• Free cash flow remained negative at ¥-1,132 million, though improved from ¥-2,249 million year-over-year.

• Interest-bearing debt increased to ¥13,679 million, with a debt-to-equity ratio of 0.28.

• Ordinary profit was ¥4,487 million, down from ¥5,791 million year-over-year.

Outlook and guidance

• Full-year forecast for FY3/2025: net sales ¥62,500 million, operating profit ¥6,500 million, ordinary profit ¥6,500 million, net profit ¥5,000 million, and EPS ¥284.18.

• Annual dividend forecast maintained at ¥150 per share, with a targeted total return ratio of 52.8%.

• Management reiterates a commitment to a 50% consolidated stockholder return ratio, balancing shareholder returns and business investment.